Hydropower shares worth over Rs 17 b in two years

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    KATHMANDU, Sept 13

    share_issue_2014Hydropower companies are set to issue ordinary shares worth Rs 17.24 billion within the next two years. Four projects being constructed under Chilime Hydropwoer Company will offer shares worth Rs 8.98 billion, Upper Tamakoshi Rs 5.18 billion, Hydroelectricity Investment and Development Company Limited (HIDCL) Rs 2 billion and other four companies Rs 1.04 billion.

    Upper Tamakoshi, Sanjen, Rasuwagadi, and Mid Bhotekoshi will offer shares to savers at the Employees Provident Fund (EPF), locals affected by the projects, and staffers of the developer companies, Nepal Electricity Authority (NEA), and lending companies in the first stage before offering shares for the general public. The process of issuing shares for Upper Tamaksohi has already started. Chief of the Environment and Public Relations at the project Ganesh Prasad Neupane states that preparations are on to sell the shares allocated for locals of Dolakha district by the end of 2014. He says details of the people in the district are currently being collected for the purpose.

    The process of issuing shares of subsidiary companies of Chilime will start within a year. The subsidiary companies Sanjen, Rasuwagadi, and Mid Bhotekoshi will offer ordinary shares worth Rs 1.77 billion, Rs 3.35 billion and Rs 3.86 billion respectively. Sanjen will issue shares within a year and the others within two years, according to Chilime that claims that its companies will provide good investment opportunities to the commoners as all of its projects are financially attractive. Sanjen, with equity of Rs 3.62 billion, will offer 10 percent shares worth Rs 362 million to the locals of Rasuwa district, 19.5 percent worth Rs 705.90 million to savers at EPF, 15 percent worth Rs 543 million to commoners, 3.5 percent worth Rs 126.70 million to staffers of NEA, Chilime and the subsidiary company, and one percent Rs 36.20 million to staffers of EPF.

    The 111 MW Rasuwagadi, with equity of Rs 6.84 billion, will offer 10 percent shares worth Rs 684 million to the locals of Rasuwa district, 19.5 percent worth Rs 1.33 billion to savers at EPF, 15 percent worth Rs 1.02 billion to commoners, 3.5 percent worth Rs 239.40 million to staffers of NEA, Chilime and the subsidiary company, and one percent Rs 68.40 million to staffers of EPF. Likewise, the 102 MW Mid Bhotekoshi, with equity of Rs 6.14 billion, will offer 10 percent shares worth Rs 614 million to the locals of Sindhupalchowk district, 19.5 percent worth Rs 1.19 billion to savers at EPF, 15 percent worth Rs 921 million to commoners, 3.5 percent worth Rs 214.90 million to staffers of NEA, Chilime and the subsidiary company, and one percent Rs 61.40 million to staffers of EPF.

    Upper Tamakoshi has already signed Citizen Investment Trust (CIT) for share issue and sales management last year. Acting Chief Executive Officer (CEO) of Upper Tamakoshi Bigyan Prasad Shrestha says the process of issuing shares for savers of EPF and people of Dolakha will start within three months and all shares will be issued within the coming year. The project will issues shares worth Rs 3.60 billion to savers at EPF, locals of Dolakha, and staffers of the company, NEA, and lending companies in the first stage. It will issue shares worth Rs 1.58 billion to commoners across the country in the second stage. The investors at EPF will get 17.28 percent shares worth Rs 1.82 billion, locals of Dolakha 10 percent worth Rs 1.05 billion, commoners 15 percent worth Rs 1.58 billion, staffers of lending companies EPF, CIT, Nepal Telecom and Rastriya Beema Sansthan 2.88 percent worth Rs 304.99 million, and staffers of the company and NEA 3.84 percent worth Rs 406.65 million.

    The government-owned HIDCL is preparing to issue primary shares worth Rs 2 billion and is currently in the process of receiving permission from the Securities Board of Nepal (SEBON) for that. CEO Deepak Rauniyar says the process of issuing shares will start immediately after receiving permission from SEBON. The paid-up capital of HIDLC will rise to Rs 10 billion after issue of the shares. The government will own 80 percent of the company and the commoners 20 percent after the issue. The government is preparing to sell only 20 percent of the company’s shares to commoners as the company has been established through a special provision. The company has already invested Rs 2.10 billion in four projects until now and is preparing to invest in six additional projects. Chairman of Arun Hydropower Guru Neupane reveals that four hydropower companies developed by the private sector are also preparing to sell shares to commoners.

    Projects/Companies Value of shares offered
    Upper Tamakoshi Rs 5.18 billion
    Rasuwagadi Rs 3.35 billion
    Mid Bhotekoshi Rs 3.86 billion
    HIDCL Rs 2 billion
    Sanjen and Upper Sanjen Rs 1.77 billion
    Api Power Rs 400 million
    United Modi Rs 400 million
    Ankhukhola Rs 200 million
    Barun Hydropower Rs 48.60 million

    Source : Karobar Daily